Dear Stakeholder,
We began 2022 reaching an important milestone: 150 years of company life. A long journey made of industry, culture, tradition, technology and passion that motivate the 30,000 people who each day help build Pirelli’s present and future. We have traversed three centuries of history and marked the occasion, on 28 January 2022, despite the difficulties of the external context linked to the pandemic.
The measures adopted allowed us to overcome the obstacles on our path and end 2021 with results beyond our forecasts, which had been revised upwards throughout the year. Revenues exceeded 5.3 billion euro, while adjusted Ebit was above 800 million euro, with a margin of 15.3%, net profit over 320 million euro and cash generation before dividends 431 million euro. We were able to achieve these results by increasing our focus on the high end and specialties, cutting-edge products and efficiency programs.
Our ability to adapt the business model to the constant and rapid changes of the economic context, already demonstrated during the health emergency, will also be essential in handling the rising volatility stemming from growing geopolitical tensions.
Our commitment to Research & Development remains a key factor, where the company invests 6% of High Value revenues annually, one of the highest levels in the sector. There is also the significant commitment to sustainability that is central to our strategy and led to our launching the first FSC certified tyre in the world. In line with the goal of attaining carbon neutrality by 2030, in 2021 Pirelli pursued the decarbonization of the group’s value chain. The Company achieved the “Science Based Target” for climate control at its locations four years ahead of schedule, which will lead to a more ambitious update of the target.
The Pirelli brand was once again an important lever whose power we constantly fed through our sports’ sponsorships, as well as the many cultural projects and initiatives we supported. In terms of our identity, the work of the Fondazione Pirelli, which houses our archives and history, was also fundamental, as was Pirelli HangarBicocca, our art space that helps observe and understand contemporary culture.
Thanks to all this, Pirelli is synonymous with safety, technology and reliability, together with competition, aesthetics and entrepreneurial culture. Today we are involved in more than 350 motorsport competitions, headed by Formula 1, Superbike and the Rally world championship. Our brand is also connected with the worlds of winter sports, football and sailing, where Pirelli flanks Luna Rossa. After the suspension of the 2021 edition because of the pandemic, we returned to publishing the Pirelli Calendar, with the 2022 edition “On the road” signed by Bryan Adams.
Thank you to all the people who enabled Pirelli to celebrate 150 years while keeping its gaze constantly on the future. I wish us all, amid the international difficulties of the moment, a return to a serene future.
Marco Tronchetti Provera
